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Efficient market theory
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Efficient market theory

Equivalent to efficient market hypothesis and efficient markets theory. Also labelled EMT or EMH

This theory / hypothesis suggests that market prices react rather rationaly and instantly to all known information, so that prices fit

The EMT is put somewhat in check by market anomalies (mispricings, anomalous returns or volatilities...). Those anomalies are due either to technical imperfections or to behavioral biases. See behavioral finance